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Eyes On Express-1

ATeam

ATeam

Senior Member
Retired Expediter
Tomorrow (Sept. 1) will be a big day in the history of Express-1 (NYSE Amex: XPO). Shareholders will meet and are expected to approve the deal that will make Bradley Jacobs CEO of the company, and his company -- Jacobs Private Equity -- majority shareholder. Shareholders are also expected to vote to change the company name to XPO Logistics.

Jacobs plans to inject up to $150 million into the company and, through acquisitions, build XPO into a multi billion-dollar company.

The Expedite NOW interview of Mr. Jacobs and former CEO Mike Welch can now be read online.

See: New Owner of Express-1 Has Big Plans

(Full disclosure: Diane and I own shares of XPO.)
 
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OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
Well 2 things stuck out in that article...

First the biggie and I quote:
We want to grow like we always have, through quality customers, and not do it on the backs of owner-operators. In 2008 and 2009, when times were tough, we thought that (lowering rates to attract more business) was the wrong move so actually our margin shrunk significantly but at the same time when many other carriers’ fleets shrunk because of cutting rates to the owner-operators, ours grew.
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while they might not have cut their rates to customers...they did with the O/O's...remember my DIME campaign?

the other...they are still speaking miles and more of them....
we want to put more freight on their trucks and increase the miles that they already have. I think we’re already a leader as far as miles per week that we offer to our owner-operators, but I think with this added investment we’re going to be able to increase that
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Sorry Mr Welch...O/O's want quality paid miles, I believe..
 
mcavoy33

mcavoy33

Seasoned Expediter
OntarioVanMan said:
There is so many small carriers we don't even know about out there....I would imagine they'll be looking for ones that have a customer base of their own...that is worth their while..
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I wonder how many small regional expediting companies are out there. Anyone have a ballpark guess or figure?
 
davekc

davekc

Senior Moderator
Staff member
Fleet Owner
OntarioVanMan said:
Well 2 things stuck out in that article...

First the biggie and I quote:


while they might not have cut their rates to customers...they did with the O/O's...remember my DIME campaign?

the other...they are still speaking miles and more of them....


Sorry Mr Welch...O/O's want quality paid miles, I believe..
[/FONT]
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Watch what they do, not what they say.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
mcavoy33 said:
I wonder how many small regional expediting companies are out there. Anyone have a ballpark guess or figure?
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From sea to shining sea..there is a ton of small carriers...

No use in buying the ones that only do the load boards...I'd be looking for the ones that actually have a client list....
 
B

blizzard2014

Veteran Expediter
Driver
Panther might be the largest expediter in North America. I know it has to be a toss up between Panther and Fedex. Landstar might also be in the mix. Possibly Load 1.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
blizzard said:
Panther might be the largest expediter in North America. I know it has to be a toss up between Panther and Fedex. Landstar might also be in the mix. Possibly Load 1.
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If E1 is 5th at around 400 units...then we must be at least in the top 10 at 300 units...
 
B

blizzard2014

Veteran Expediter
Driver
OntarioVanMan said:
From sea to shining sea..there is a ton of small carriers...

No use in buying the ones that only do the load boards...I'd be looking for the ones that actually have a client list....
Click to expand...

A lot of the client lists are on third party logistics boards. The problem is only a few carriers are allowed to access those boards. Like trying to get on with Ford Motor Company, they already have 15 or some arbitrary number of approved carriers and rarely accepd new people to see their loads on NLM! I know one carrier who has been with them since they switched over to NLM.

But how is XPO Logistics going to get NLM's client list when NLM is the broker for the Ford and General Motors loads? I know Expeditors got the Chrysler loads but that does not mean Express 1 will get any of these loads. We'll just have to wait and see what happens!

Don't bash them little carriers. I know some little guys with just 15 trucks and they bring in between 500 and 2500 dollars a week just pushing buttons on a computer. It's still a very lucrative business if one is not expecting to become a millionaire!
 
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xiggi

xiggi

Veteran Expediter
Owner/Operator
No one really knows if it is even expedite they will focus on. Acquisitions could lean more to other types of logistics companies. I am not sure how productive buying someone because of a customer list is. People with more smarts than I would have a better idea but it seems like an expensive way to acquire customers versus paying a sales commission to go after those customers. If you spend good money for what is essentially a customer list what is to guarantee you will have them a year down the road?
 
P

purgoose10

Veteran Expediter
When they branch out I don't think they will waste money on buying another Expedite Carrier unless they are tied in with a major Logistics Co. I look for them to buy a Logistics company already established in the eastern sea board and midwest. That way they will get there customer base and expand out from there with expedite.
 
B

blizzard2014

Veteran Expediter
Driver
purgoose10 said:
When they branch out I don't think they will waste money on buying another Expedite Carrier unless they are tied in with a major Logistics Co. I look for them to buy a Logistics company already established in the eastern sea board and midwest. That way they will get there customer base and expand out from there with expedite.
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Like when panther bought out Elite Services Worldwide and became a freight forwarder and air charter company as well as an expedite company. Panther has offices all over the west coast now with Elite Services. That was a great move on Panthers part.
 
P

purgoose10

Veteran Expediter
blizzard said:
Like when panther bought out Elite Services Worldwide and became a freight forwarder and air charter company as well as an expedite company. Panther has offices all over the west coast now with Elite Services. That was a great move on Panthers part.
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Yes you are right and that's what probably will happen with E-1, I just don't know how they can expand their truck base the way they treat them.
 
OntarioVanMan

OntarioVanMan

Retired Expediter
Owner/Operator
blizzard said:
A lot of the client lists are on third party logistics boards. The problem is only a few carriers are allowed to access those boards. Like trying to get on with Ford Motor Company, they already have 15 or some arbitrary number of approved carriers and rarely accepd new people to see their loads on NLM! I know one carrier who has been with them since they switched over to NLM.

But how is XPO Logistics going to get NLM's client list when NLM is the broker for the Ford and General Motors loads? I know Expeditors got the Chrysler loads but that does not mean Express 1 will get any of these loads. We'll just have to wait and see what happens!

Don't bash them little carriers. I know some little guys with just 15 trucks and they bring in between 500 and 2500 dollars a week just pushing buttons on a computer. It's still a very lucrative business if one is not expecting to become a millionaire!
Click to expand...

I wasn't bashing the small guy...just saying....;)
 
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